Boost Africa Funding Empowers Startups through strategic investments that scale innovation, enhance connectivity, and drive inclusive economic growth.
For as long as the internet has been around in Kenya, access in the informal areas has been limited by high costs, both for installation and use. Many people still rely on capped mobile data that often runs out fast, making it difficult to have a smooth experience when working, learning, running online businesss, or entertainment. This digital divide means that some households enjoy seamless connectivity since they have the funds, while many others are left behind.
Enter POA Internet, an enterprise offering affordable unlimited connections designed for low-income areas. POA, which offers modest set up rates and weekly or monthly payment plans, is transforming access to connectivity in areas that are otherwise overlooked by other providers and the service has been received very well. POA uses fixed wireless Access and software to control operations, hence making savings and passing these on to their customers.
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POA Internet is a startup and like many other startups trying to make it, funding was one of their key challenges early on. Due to the lack of infrastructure in the low-income neighbourhoods to support rollout of internet services, the company needed huge capital injection to the able to put up radio masts, towers and the fibre network.
Part of POA’s ability to continue operating and growing has been made possible through support from Boost Africa, a program that has provided the capital and technical support to scale the company’s model. Boost Africa is empowering POA Internet both financially and non-financially through a private equity fund called Seedstars Africa and this is the fund that POA has used to secure funding for infrastructure set up, equipment, as well as to hire additional labour and train them.
Boost Africa is a joint initiative between the African Development Bank (AfDB) and the European Investment Bank (EIB), with support from the European Commission towards empowering both venture capital fund managers to attract funding from private investors; and African entrepreneurs to scale and grow their businesses sustainably.
By de-risking investment in Africa through utilisation of blended finance through grants from the EU; early investments in private equity funds that support African companies; and structuring of junior tranches which in essence means EIB will absorb any losses that the funds operating in Africa may incur, helps to encourage other investors to also direct their money to companies on the continent as they are shielded from negative impact by EIB.
“We are here to support private sector deveopment. We are here to support startups and SMEs and also help young entrepreneurs launch their businesses. It really fits well and its not only money that we bring. We also bring technical support” Edward Claessen – Head of European Investment Bank Regional Hub for East Africa speaking on the Boost Africa initiative.
“Boost Africa is part of the Global Gateway initiative that looks to support Africa’s private sector and we support sectors ranging from logistics to education, agriculture, fintech and also the creative industries like music” Edward Claessen – Head of European Investment Bank Regional Hub for East Africa.
The positive shift occasioned by internet availability is clear in the data. For instance, a 2024 survey by the European Investment Bank covering 800 POA users showed that 85 percent use their internet for professional purposes, 68 percent reported increased income or savings, and 62 percent connected their homes for the first time through POA.
These numbers tell a powerful story of inclusion and it shows that people are not simply online for the sake of it. They are making money, saving, feeding their families, and building networks that improve their lives.
This master stroke by EIB through the Boost Africa initiative is reshaping households, communities, local economies and ultimately the national economy. Entire neighborhoods are moving closer to economic stability.
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